Volkswagen Truck and Bus has entered a 'strategic alliance' with US-based truck and bus manufacturer Navistar.
The companies have formed a far-reaching alliance that includes framework agreements for a strategic technology and supplycooperation and a procurement joint venture. Volkswagen Truck and Bus will furthermore acquire a 16.6% equity stake in Navistarthrough a primary share issuance.
With the completion of this transaction, Volkswagen Truck and Bus, which includes the brands MAN, Scania, and Volkswagen Caminhões e Ônibus, will gain access to the key North American market, where it wasnot previously represented.
Andreas Renschler, CEO of Volkswagen Truck & Bus and member of the board of management of Volkswagen AG responsible for commercial vehicles, said: “Closer collaborationamong our existing brands was a top priority for our commercialvehicles business and we are well on track in this context. We are now taking the next step on our way to becoming a Global Champion in the commercial vehicles industry. The strategic alliance with Navistar is an important milestone and will be very beneficial for both sides.”
“We are very pleased to partner with a global leader who shares our view of the world, in an alliance that will deliver multiple benefits and isconsistent with our open-integration strategy,” said Troy Clarke, President and CEO of Navistar.
“Starting in the near term, this alliancewill benefit our purchasing operations through global scope and scale. Over the longer term, it is intended to expand the technology options weare able to offer our customers by leveraging the best of both companies and enabling Navistar to deliver enhanced uptime. Volkswagen Truck & Bus’s equity investment will strengthen our liquidity position and expand our financial flexibility, while aligning us with avaluable strategic partner.”
Volkswagen Truck & Bus and Navistar have agreed toestablish a procurement joint venture that will pursue joint globalsourcing opportunities.
The strategic alliance will receive oversight from an Alliance Boardconsisting of top-level representatives from both sides.
Under the umbrella of Volkswagen Truck & Bus, Andreas Renschlerhas been heading the process of bundling medium- and heavy-duty trucks and buses of Volkswagen AG into a robust commercial vehicles group. The Company’s strategy includes plans to expand into new regions.